In calculating earnings per share, a company uses the treasury stock method when   a. it recognizes the assumed impact of exercising outstanding warrants.   b. it develops a methodology to handle the premium paid on exercised share options.   c. it needs to value the cash received for a convertible bond.   d. it needs to value treasury stock repurchased during the year.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter15: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
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  1. In calculating earnings per share, a company uses the treasury stock method when
      a.
    it recognizes the assumed impact of exercising outstanding warrants.
      b.
    it develops a methodology to handle the premium paid on exercised share options.
      c.
    it needs to value the cash received for a convertible bond.
      d.
    it needs to value treasury stock repurchased during the year.
     
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